New Jersey § 54:4-8

§ 54:4-8.

a. Local units that enter into regional service agreements, either as providers or

receivers of services after July 1, 1997, may apply for State aid to reduce property

taxes owed on residential property as provided in P.L.1999, c. 61 ( C.54:4-8.76 et seq. ). Each residential property shall receive a reduction in the total property tax obligation

during each calendar year in which the local unit receives aid based on the regional

services that are entered into by the local units serving the residential property. Aid shall be granted for each calendar year during which a regional service agreement

is in effect. This program shall be known as the “Regional Efficiency Aid Program” or “REAP.” b. The formula for allocating REAP aid shall use the following variables, where: P = total number of points accumulated for the regional services of the local unit

provided by or to the local unit D = dollar value per point C = latest population of a municipality using the most recent State population estimates

provided by the New Jersey Department of Labor or the U.S. Bureau of the Census, whichever

is most recent. W = weighting factor of fiscal stress T = total aid and the formula shall be: T = P x C x D x W; or: Total aid = total number of points times population, times dollar value of a

point, times weighting factor. c. A system of determining variables in the formula for allocating State aid, other

than for determining the dollar value of a point, shall be proposed within six months

of enactment of this act by the commissioner and director, and shall be adopted by

each as rules pursuant to the “Administrative Procedure Act,” P.L.1968, 410 ( C.52:14B-1 et seq. ). The dollar value (D) of a point shall be one dollar per point. The system shall have the following provisions: (1) A schedule of the number of points for each type of service shall be set by the

commissioner or director, as appropriate to the local government unit. (2) The director or the commissioner may assign the amount of points for services

that are not included on the schedule on a case-by-case basis. (3) The assignment of the number of points may be based on the percentage of the cost

of the service in the current budget of the local unit, a relative value scale of

the importance of the service, a combination of the two, or such other criteria that

shall be designated by the commissioner or the director to provide incentives as they

deem necessary or appropriate. (4) An increase to the number of points by an amount not to exceed 25% of the number

provided to the recipient, to be granted to the provider of regional service. (5) A formula for weighting points based on a local unit's degree of fiscal stress. d. The commissioner and the director shall establish procedures for the administration

of REAP aid and provide for an application and award process that: (1) is concurrent with the timetable and process of setting property tax rates; (2) ensures that regional services are bonafide; (3) ensures that to qualify for the receipt of REAP aid under P.L.1999, c. 61 ( C.54:4-8.76 et seq. ), regional services result in savings for the cost of services, including any new

capital expenditures, reflected as current or future budget reductions, limits on

future cost increases, minimizing the costs of a new service, or such other criteria

as the commissioner or director may deem relevant; and (4) provides for monitoring, oversight, and enforcement of the provisions of REAP. e. Each year the director and commissioner shall review applications and calculate

the allowable number of points accumulated by the respective local units and calculate

the amount of REAP aid each local unit has earned. The commissioner shall properly allocate aid to ensure that the municipalities constituting

sending districts, and regional and consolidated school districts receive their share

of aid based on their proportion of taxes or tuition paid, or other appropriate measure. f. All local unit appropriations for regional services for which REAP aid is provided

shall be exempt from the limitations on appropriations pursuant to the provisions

of the laws limiting local unit expenditures, P.L.1976, c. 68 ( C.40A:4-45.1 et seq. ), and subsection d. of section 5 of P.L.1996, c. 138 ( C.18A:7F-5 ). g. The tax assessor of each taxing district for which a local unit has applied to

receive REAP aid shall identify those parcels that qualify as residential property. (1) As a condition of eligibility for a REAP property tax credit, taxpayers of the

taxing district may be required to answer questionnaires and to certify that the property

for which a REAP property tax credit is sought is residential property as defined

in section 3 of P.L.1999, c. 61 ( C.54:4-8.78 ). Such questionnaires and certifications may be appended to the notice required by

section 32 of P.L.1991, c. 75 ( C.54:4-38.1 ), in a form to be adopted by the Director of the Division of Taxation. The assessor may also utilize any other information that will aid in determining

whether a parcel qualifies as residential property. The determination of the tax assessor as to whether a parcel qualifies as residential

property shall be final unless such determination is appealed to the county board

of taxation. (2) The assessor shall provide to each local unit making its first application for

REAP aid an explanation of how residential properties shall be identified, which explanation

shall be included in the application. (3) By May 1 of each year, the assessor shall identify to the county board of taxation

the properties which the assessor has identified as residential property, together

with a certification that the assessor has made good faith efforts in so identifying

those properties. h. A REAP property tax credit shall be applied to each residential property each year

as follows: (1) The director and commissioner shall certify to each county board of taxation,

the Director of the Division of Budget and Accounting, the Legislative Budget and

Finance Officer, and the Senate President and the Speaker of the General Assembly,

by May 1 of each year, the amount of REAP aid due to each local unit for that tax

year. (2) When the table of aggregates prepared pursuant to R.S.54:4-52 for each municipality is prepared, a tax credit rate shall be calculated using the

calculation of total REAP aid divided by the total taxable value of residential property. (3) The tax credit rate shall be multiplied by the taxable value for each residential

property, the product of which shall be deducted from the total taxes due, before

deductions, on each residential property for the tax year. The tax credit rate and amount of the credit shall be displayed on the tax bill. i. The total amount of REAP aid shall be paid by the Director of the Division of Budget

and Accounting as State aid to each municipality in two equal installments payable

on August 1 and November 1 of each year. j. The director shall establish a procedure for information about the aid program

and the amount of REAP aid earned by each taxing district to be printed on, or mailed

with, the tax bill. k. The Director of the Division of Taxation shall assist in identifying residential

properties as defined in this act and may make any additions to notices of assessments

or to other forms or notices as the Director of the Division of Taxation deems appropriate,

and may promulgate regulations for the identification of residential property, including

a requirement that taxpayers timely complete certifications or questionnaires in order

to be eligible for a REAP tax credit. Notwithstanding the provisions of R.S.54:50-8 to the contrary, the Director of the Division of Taxation may provide such information

as he deems necessary to the commissioner, the director or the county boards of taxation

to implement the provisions of P.L.1999, c. 61 ( C.54:4-8.76 et seq. ). The Director of the Division of Taxation, the director and the commissioner may

adopt rules to effectuate the purposes of P.L.1999, c. 61 ( C.54:4-8.76 et seq. ) in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968,

c. 410 ( C.52:14B-1 et seq. ).